The Rockets knew they would be better with Chandler Parsons than without.

They believed, however, they wouldn't be good enough to consider their roster complete.

Months after Parsons had been one of the keys to the Rockets' hopes, their captain and perhaps the NBA's best bargain, he is none of those things.

He is instead the Dallas Mavericks' prized free-agent acquisition and the symbol of the Rockets' offseason gone wrong.

A year to the day after the Rockets officially signed center Dwight Howard, they chose not to match the offer sheet signed by the player who helped recruit Howard, letting Parsons, a 6-9 forward, jump to the Mavericks and a three-year, $46 million contract.

The Rockets let Parsons, 25, go to Dallas on Sunday because they believed that with the contracts held by him, Howard and James Harden, they would essentially be locked out of other moves, a person with knowledge of the decision said.

They opted to take the hit in exchange for flexibility, believing their chances of building a contender would be better with the ability to make other potential moves.

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Collateral gain

The offensive statistics for Trevor Ariza and Chandler Parsons are similar, but the Rockets' addition of Ariza should help improve the team defensively:

Category Ariza Parsons

Age 29 25

Height/weight 6-8, 220 6-9, 227

Salary $32 million, 4 yrs. $46 milion, 3 yrs.

Experience 10 years 3 years

Points per game 14.4 (9.7) 16.6 (14.1)

Field goal pct. 45.6 (43.4) 47.2 (47.3)

3-point pct. 40.7 (34.7) 37.0 (37.0)

Rebounds per game 6.2 (4.6) 5.5 (5.2)

Assists per game 2.5 (2.0) 4.0 (3.3)

Minutes per game 35.4 (26.9) 37.6 (34.5)

Note: Career statistics are in parentheses.

By letting Parsons go, the Rockets could have up to max cap room (depending on the next salary cap) next summer and a substantial trade exception this season to position themselves to build in ways they could not last week. The draft pick obtained from the New Orleans Pelicans in the Omer Asik deal sets up nearly identically to the pick used in their trade for Harden.

Parsons' contract also would have been essentially untradable, taking him out as a potential piece of a deal. He cannot be traded until Jan. 15 and, after next season, must give his approval to any trade. Because he can opt out of the contract after two seasons, he would have been unlikely to be sought by a team moving a star player because Parsons would have the ability to leave as a free agent.

The Rockets could have kept Parsons on the final season of his rookie contract, worth just $964,000, but chose to not pick up the option in order to maintain the right to match any offer sheet he received.

Heartfelt thanks

Shortly after the decision was finalized Sunday, Parsons tweeted he had heard from Rockets general manager Daryl Morey and Rockets owner Leslie Alexander.

"Nothing but utmost respect for them, the fans and city of Houston," Parsons wrote in the tweet. "THANK YOU for your support!"

The Rockets are not expected to seek high-priced deals with remaining restricted free agents such as Greg Monroe or Eric Bledsoe. Instead, they will look to sign players to short-term contracts in order to keep their flexibility for next summer.

With an agreement to bring back Trevor Ariza to play Parsons' small forward position, the Rockets hoped to upgrade their defense while developing young starters Terrence Jones and Pat Beverley.

But even with Ariza, the loss of Parsons represents a major blow, with the Rockets also dealing guard Jeremy Lin and finalizing negotiations on the trade of center Omer Asik in the name of cap space they had hoped to use on a third signature star.

The Rockets are determined to improve defensively, and the addition of Ariza should be a significant step in that direction. But that is a long way from the moves they had thought they were about to make.

Had the Rockets landed Chris Bosh on Friday, they would have matched the offer to keep Parsons, a person with knowledge of their thinking said, becoming a team expected to be in position to join the contenders.

Instead, they have taken steps backward, depending on moves they can put together to rebuild.

Defensive gain

Parsons' importance to the Rockets was clear last season. They went 4-4 in the games he missed, 50-34 when he played.

And coach Kevin McHale preferred to keep Parsons on the floor as much as possible, playing him 37.6 minutes per game, seventh most in the NBA and just 1.1 minutes per game shy of league leader Carmelo Anthony.

Ariza would mitigate much of the loss, particularly as a catch-and-shoot threat from the 3-point line, and be a much more disruptive defender.

But he is not the well-rounded offensive player Parsons is and, after 10 NBA seasons, is not likely to expand his game as a playmaker as Parsons likely will.

Parsons will do that with the Mavericks, while the Rockets hope all their steps backward help them to a running start at getting somewhere.